SALT LAKE CITY — The U.S. Securities and Exchange Commission reports it has obtained a temporary asset freeze, restraining order and other emergency relief against Draper-based Digital Licensing, doing business as DEBT Box, as well as four company principals and over a dozen other named defendants, alleging they are connected to a cryptocurrency scheme that defrauded hundreds of investors of nearly $50 million.
The SEC claims defendants told investors, through online videos, social media posts and investor events, that the node licenses would generate various crypto asset tokens through crypto mining activity and that "revenue-generating businesses in a variety of sectors would drive the value of the various tokens DEBT Box mined, resulting in exorbitant gains for investors."
The SEC's complaint further alleges that DEBT Box and its principals — along with defendants James Franklin, Western Oil Exploration Company, and Ryan Bowen — lied to DEBT Box investors about the revenues of the businesses purportedly driving the value of the tokens.